- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
from part b of the question to evaluate the proposed strategy for acquisition
suitability – option is suitable if it is built on strength,exploit the opportunity,reduce weakness and neutralize the threat .from the scenario we know that there is the opportunity in the ceeland
is there any hints there in scenario that option is built on strength?
my another question is ( option is suitable if it is built on 1 strength,2 exploit the opportunity,3 reduce weakness and 4 neutralize the threat) means that all 4 have to be satisfied or need to satisfy only 1 in order for option to qualify as suitable ?
“MachineShop currently has 50 brightly decorated stores throughout Arboria. On average, a further two stores are opened every month. The company has no direct competitors. Most firms offering similar machines only sell them to tradesmen. In many respects MachineShop has defined a new market and it is the only company which, at present, seems to understand the dynamics of this market….
“In 2012, on a turnover of $50m, MachineShop recorded a gross profit margin of 28% and an operating margin of 17%. It delivered a Return on Capital Employed (ROCE) of 17·5%. It currently has a gearing ratio (defined as long-term loans/capital employed) of 15% and an interest cover ratio of 3·5.”
All looks strong to me.
For suitability only 1 needs to be satisfied, though the more the better.
here opportunity is only seen by me in the case of FRG,is there any other mentioned in the scenario such as fixing weakness,avoiding threat ,and strength ?
- You must be logged in to reply to this topic.